Almost €10 billion invested in European student housing

In last 10 years, student housing has evolved into a highly appealing asset class, now ranked fourth for development and investment by over 200 investment managers. With student numbers growing and revenues delivering as promised, even during economic downturns, it is regarded as a crisis-resilient asset class, good for investment in 2019, according to a new study released by student housing research specialist StudentMarketing.

The student housing asset class now counts over 500 investors, managers, developers and operators in Europe. Annual transactions reached almost €10 billion in 2018, yields continue to outperform mainstream asset classes by a great margin (ca. 100 to 250 bsp).

Now, student housing represents a well-established, trusted, and documented asset class with considerable awareness, investment appetite, and liquidity. Though, a still relatively nascent sector, only at the beginning of consolidation and maturing (107 portfolios, 76% smaller than €1 billion), with many opportunities for high returns.

Moreover, student demand heavily outstrips student housing supply, on average there are beds for only 15% of the students in continental Europe. Demand is strong and growing…Continue reading